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1manband

06/18/13 11:46 AM

#94201 RE: Warmy #94191

EVERYONE ELSE calls it what it is commonly understood to be



Not true. Usually just penny stock board posters who want to convince other readers there is "more buys than sells" and thus the stock price has got to go up!

By the way, companies commonly don't dilute on the ASK (buy, offer, potato) side of the market.



They most certainly do. For several reasons, not the least of which is to dump stock without crashing the price. the seller, often an insider, will give their broker a desk order for a massive amount of shares and let him "work it". By throwing just a little at a time on the ask, conveniently and coincidentally timed with a pump campaign, such as a series of tweets, the broker can feed the stock in slowly and not crash the market. They will let the buying volume created by the pump campaign slowly eat away at the huge sell position. If they threw it in on the bid, it would crash the stock very quickly and not only would the seller have a difficult time getting off all the stock he has to sell, but it would completely defeat the purpose of the promo campaign. Just like we are seeing right here in GDSM.

That is how penny stock pump and dumps work.